Reference no: EM131507714

Section A

1. ‘Common law' can mean differently in various situations. Explain this concept in relation to the following areas:

(a) The Doctrine of Judicial Precedent

(b) Equity

2. Despite the lack of consideration when a contract is varied, promissory estoppel would protect a party receiving an advantage against a claim under the original agreement.

(a) Explain the principle enunciated by Lord Denning landmark case of Central London Property Trust Ltd. V High Trees (1947) KB 130 as regards the landlord's claim against the tenant for the period 1939-1945?

(b) Would the tenant in that case be able to avoid paying the full rent under the contract for the period after 1945?

3. Brigitte is a regular traveller with Farmy Bus Company. When she deposited her bag at the its luggage office, she was handed a small slip of paper which was to enable her to reclaim her suitcase. Brigitte put the slip of paper into her handbag without glancing at it.

On the paper appeared the following words: "The liability of the company for loss of or damage to goods deposited is limited to $100 or the value of the said goods, whichever is lower".

These words also appeared on a notice above the luggage office counter. Brigitte's suitcase contained a laptop that costs $800. When she returned to collect her suitcase, the attendant informed her that it was missing and could not be found. Advise Brigitte.

Section B

1. Slory Pte Ltd are owned by Sim and Tom. They are also Slory Pte Ltd's directors.

Lam works for Slippery Pte Ltd and his job involves keeping the premises clean. While descending the stairs one morning to retrieve his cleaning tools, one of the wooden steps got dislodged and Lam slipped and fell.

He fractured his leg and was bedridden for a couple of months. Slory Pte Ltd had previously sent out a circular via email to its employees about the faulty steps and advised that the elevators be used instead. On the day of the incident, the elevators were being serviced.

a) Advise Lam on the possibility of initiating a claim against Slory Pte Ltd.

b) Lam finds out that Sim and Tom are wealthy, and wants them to pay him for his injury. Explain whether he would be able to do so. Would it make a difference if Sim and Tom operate their business as a partnership?

2. Jinglery is employed as a Catering Services Manager at an exclusive training and development firm located in Shenton Way. His duties require him to organise the food and beverages required at conferences conducted by the firm.

The express terms of Jinglery's employment contract include the authority to order food on behalf of the firm for the purposes of catering for the conferences. Jinglery's work often involved ordering finger food and snacks from Hagia Mona Catering Pte. Ltd.

A conference is held at the training firm and $6,000 worth of food and beverages are required. However, Jinglery orders $10,000 worth of food and drinks from Hagia Mona Catering Pte. Ltd. Jinglery allocates $6,000 worth of food and drinks for the conference and the balance $4,000 was for his private party to be held at his house later that evening.

This was done without the employer's knowledge. The conference went on smoothly and all attendees were impressed by the food and drinks provided to them.

Later that evening, a colleague, Terry, from work attends Jinglery's party and notices that the party had been catered for by Hagia Mona Catering Pte. Ltd. Terry inquires about the catering costs and Jinglery admits to Terry that the cost of the catering was in fact paid for by their employer.

Terry is shocked to hear this and informs the company of the fraud on Monday morning. The firm subsequently refuses to pay the total bill of $10,000 invoiced by Hagia Mona Catering Pte. Ltd. The firm agrees to only pay the catering company
$6,000 for the food and drinks allocated to the conference.

a) Explain the contractual relationship between the principal, agent and third party, and the ways by which the agency authority is created.

b) Explain what is ostensible authority, and the how it is created.

c) Advise if the firm will be liable to pay the full amount to Hagia Mona Catering Pte. Ltd.